Shareholders of Nasdaq-listed Digital Currency X Technology Inc. are scheduled to vote on September 3 on a 160-for-1 share consolidation. If approved, it will mark the company's second reverse stock split of 2026, following a 12-for-1 action that took effect on January 22.
The company recently transitioned from electric-vehicle manufacturing into the digital asset sector. Its latest annual report indicated that its treasury held 157.45 million EDGEAI tokens valued at approximately $402 million as of December 31, 2025. These tokens were subsequently locked in a 12-month staking agreement carrying a floating annualized yield ranging from 3.5% to 8%.
Proposed Share Consolidation Mechanics
Under the proposed plan, every 160 Class A or Class B shares would become one share for holders whose balances are divisible by 160. The company stated that fractional results would be rounded up to the nearest whole share. The consolidation applies to both issued and unissued shares and will take effect on a date confirmed by Nasdaq or one on which the exchange raises no objection.
The proposals involve three separate resolutions regarding authorized share capital:
- The first resolution reduces authorized shares from 3 billion (each with a par value of $0.0001) to 18.75 million (each with a $0.016 par value).
- The second resolution immediately increases the authorization back to 3 billion shares at the higher par value.
- The third resolution reorganizes the authorized share capital back to $0.0001 per share.
While authorized shares represent issuance capacity rather than stock already issued, these resolutions would expand the company's future issuance capacity beyond the 18.75 million-share ceiling created by the first step alone. The filing notes that the proposals do not themselves issue shares or prove immediate dilution.
Share Base and Voting Details
Disclosures from earlier in the year outline the company's share base floor. An annual report listed 19,823,627 Class A shares and 1,334 Class B shares outstanding as of April 20. Additionally, a July 7 filing reported the issuance of 331,753,557 units—each comprising one Class A share and warrants—at a July 3 private-placement closing. Class A shares carry one vote each, while Class B shares carry 20 votes each.
Unlike the January consolidation, which the company intended to help regain Nasdaq minimum bid-price compliance, the August meeting notice does not identify a specific compliance, financing, or offering rationale for the 160-for-1 reverse split and capital reorganization.
The virtual meeting is scheduled for 10:00 a.m. Hong Kong time on September 3. Internet and phone voting is set to close at 11:59 p.m. Eastern time on September 2.
